The consortium, which has completed a proof-of-concept for blockchain applications after holding discussions since April, plans to merge business know-how of financial firms and blockchain technology of companies to develop financial services in the next three years.

Considering the fact that blockchain technology enables financial firms to provide services without any third-party intermediaries, this establishment seems all the more meaningful as it is expected to be the first collaboration in Korea to bring the best out of its fundamental value.

Among the financial institutions included in the new consortium are KFIA, NH Investment & Securities, Daishin Securities, Dongbu Securities and more. The leading blockchain technology provider for the consortium is theloop.

KJ Eee, CEO of theloop, who leads the technology providers, said, “There will be an innovation when blockchain technology is introduced to financial services in general.

“Beyond providing blockchain-based authentication and information sharing system, we collaborate with other technology providers on developing a prototype for financial services in areas of securities trade and post trade, the prototype that is to reduce the cost and operational risk in trade finance, and ultimately improve trade efficiency.”

Recently, the Korean economy has endured rough conditions, with press agency Reuters reporting that things are only set to get worse for the country. As well as grappling with record household debt, innumerous zombie companies that are undergoing restructuring and weak exports, Korea has faced embarressment caused by numerous Samsung recalls.

The tech giant has not enjoyed 2016, with recalls for both the fire-prone (and flagship) smartphone Galaxy Note 7, as well as various washing machine models. There was also a strike at Hyundai Motor Co.